Bhageria Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹364.95+₹4.85 (+1.35%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Bhageria Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bhageria Industries Limited, together with its subsidiaries, manufactures and trades specialty dyes and dye intermediates in India and internationally. It operates through Chemicals, Solar Power, Pharma, and Others segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees457

Annual revenue₹865 Cr

How does it make money?

Turns over ₹865 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 457 employees supports ₹1.89 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.89 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +73% while net margin moved +80% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+73%

Margin effect+80%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.1% is below 10% — capital is not working hard
✓ ROCE has improved by 4.8 points over the period — returns are strengthening
✗ EBITDA margin of 11.4% is thin — little cushion if costs rise
✗ Net margin of 6.9% is slim
• Revenue has compounded at 20.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

73/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

23.1x

3Y Median

42.5x

40 monthly readings · mean 36.8x · range 13.9x–54.8x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 42.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 43% below the peer median of 40.4x.

vs. its own history

Cheap

42.5x median over 40 months · -46%

vs. sector peers

Cheap

40.4x median of 4 peers · -43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.2x

PEG

0.50

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 2.9% to 7.7%.
Return on capital is rising
ROCE has improved from 4.3% to 9.1%.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 187% over 3 years, from ₹38 Cr to ₹109 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹45 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.1% CAGR
Latest reported year was 81.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,593 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.8

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

81.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

203.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.69%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹45 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.3%

Average

Average margins

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

2.19

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

371.5 / 298.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹499 Cr	₹492 Cr	₹592 Cr	₹865 Cr	+20.1%
EBITDA	₹58 Cr	₹49 Cr	₹90 Cr	₹99 Cr	+19.8%
EBITDA Margin	11.5%	10.1%	15.2%	11.4%	—
PAT (Net Profit)	₹15 Cr	₹19 Cr	₹40 Cr	₹46 Cr	+46.2%
EPS	₹3.38	₹4.37	₹9.26	₹10.56	+46.2%
ROE	2.9%	3.6%	7.2%	7.7%	—
ROCE	4.3%	4.9%	9.4%	9.1%	—
Total Debt	₹38 Cr	₹47 Cr	₹46 Cr	₹109 Cr	+42.1%
Free Cash Flow	₹14 Cr	-₹4 Cr	₹25 Cr	-₹45 Cr	—

🟢 Revenue has grown at 20.1% a year over 3 years.

🟢 EBITDA has grown at 19.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.4% over 3 years.

🟢 PAT (Net Profit) has grown at 46.2% a year over 3 years.

🟢 EPS has grown at 46.2% a year over 3 years.

🟢 ROE has risen from 2.9% to 7.7% over 3 years (+4.8 pts).

🟢 ROCE has risen from 4.3% to 9.1% over 3 years (+4.8 pts).

🔴 Total Debt has grown at 42.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹14 Cr to -₹45 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹860 Cr

Total Liabilities

₹267 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹99 Cr

Capex

-₹143 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.6%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

24 Jul 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

3 mixed1 negative2 general

Do Bhageria Industries' (NSE:BHAGERIA) Earnings Warrant Your Attention?

Simply Wall Street, 22 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bhageria Industries Reports Q1 Revenue At 2.84B Rupees, Net Profit Touches 359M Rupees

Sahi, 22 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bhageria Industries Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Chemical Stocks In Focus: Dye Intermediate Prices See Massive Surge — Check Details

NDTV Profit, 24 Sept

Bhageria Industries consolidated net profit declines 24.94% in the March 2026 quarter

Business Standard, 02 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Bhageria Industries Share Price Forecast: 3 Year Outlook to 2030

Univest, 15 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑